In the 17th century the Habsburgs faced many problems. The kingdom suffered a serious economic crisis and foreign wars continued. In the 17th century Spain lost its dominance and France increased its power.

1. Unit 13 The decline of the
Spanish Empire

2. Miré los muros de la patria mía,
si un tiempo fuertes ya desmoronados
de la carrera de la edad cansados
por quien caduca ya su valentía.

3. The decline of Spain: Factors
• Decline of Spanish empire started in the 17th
century, and lasted the whole century, during the
reigns of Philip III, Philip IV and Charles II.
• These kings were considered weak monarchs who
delegated their functions of government in their
favourites (Validos), who used the power in their
own benefit.
• The royal treasury (Hacienda) was in debt several
times, due to the costs of the wars and the
inefficient administration of the resources that came
form America.
• The “landlord mentality” created an unproductive
society, the privileged aspired to live off the rents
and didn’t invest their benefits to stimulate
production.
• Most of the population lived into poverty, ordinary
people paid the rents to the privileged and most of
the taxes to the Crown and clergy.
Diego Velázquez: “The
Count-Duque of Olivares”.
Favourite of the king Philip
IV and one of the most
powerful men of Spain.
Murillo: “Boy catching
fleas”.
The poverty of the
majority of the
population contrasted
with the wealth of the
monarchy and nobility.

4. Philip III
(1598 –
1621)
Philip IV
(1621 -
1665)
Charles II
(1665-
1700)
King’s
Favourites
Duque of Lerma
Count-Duque of
Olivares Luis de Haro
John Joseph
of Austria
Duque of
Medinaceli
- Moved the court to Valladolid
temporary.
- Influenced the king to expel
the Moriscos
- Diplomatic policy in foreign
affairs
- Olivares: Prepared a program of
reforms, “Gran Memorial”, to
strength royal power.
- Active war policy in Europe: Spain
entered in the 30 years war.
- His failures in internal and external
policies provoked his removal in
1643
- Luis de Haro: Signed the Peace with
France and retook Catalonia.
- John Joseph of Austria: Step-
Brother of the king. Used his
military prestige to influence in
the court.
- D. of Medinaceli: Tried a
reformation of the treasury with
irregular results for the economy

5. The loss of dominance: From the diplomacy to the aggressive
policy.
• Diplomatic policy Philip III: Agreements with
England and Netherlands known as “Twelve Years’
Truce”
• Aggressive policy of Philip IV and Olivares:
• The “30 Years’ War” started in Europe in 1618, a conflict
between Catholics and protestants that lasted until 1648
• Spain entered in the “30 Years’ War” in 1635, due to the
interests of the Count-Duque of Olivares to maintain the
dominance in Europe.
• The war ended in 1648, with the Habsburg dynasty of
Spain and Austria defeated.
• In the “Peace of Westphalia” Spain recognised the
independence of Netherlands. Spain began its decline in
Europe.
Ferrer Dalmau: “Rocroi, the last Tercio”.
The battle of Rocroi (1643) was the first
defeat of the Spanish Tercios.

6. The revolts of 1640
• Olivares wanted to centralised the kingdom with two
measures:
• Creation of “El Gran Memorial”: Establish the laws of Castile for
all the Spanish territories. The objective was to centralise the
kingdom.
• Creation of “Unión de Armas”: All the Spanish territories would
contribute with troops and taxes as Castile did, cancelling the
privileges and “fueros” that some territories had.
• These measures caused revolts against Olivares and the
Crown in Andalusia, Aragon, Navarre, Portugal and
Catalonia. The most important ones were:
• Catalonia: Started as an uprising of peasants, against the
imposition of new taxes and hosing of troops in the territory.
The ruling class joined the rebellion and put Catalonia under
the sovereignty of France. The insurrection ended in 1652,
when the troops of the king took Barcelona.
• Portugal: The Portuguese nobility demanded independence,
proclaimed the Duke of Braganza as a King of Portugal. With the
support of France and England, in 1668 Spain recognised the
independence of Portugal. Coronation of the duke of Braganza
as John IVof Portugal.
“Corpus of Blood” rebellion of the Catalan
peasants against the soldiers of the king
Philip IV

7. Recognising French power:
• Spain and France continued the war after the peace of
Westphalia.
• In 1659 the war ended with the “Peace of the
Pyrenees”:
• Spain recognised the lost of Artois, Sungdau, Roussilion and
Cerdanya, which became part of France.
• Wedding compromise of Luis XIV of France and Maria-
Theresa the daughter of Philip IV: It will end up bringing a
new dynasty in Spain the Bourbons.
• Under the reign of Charles II:
• Resumed the war between Spain and France for the border
of Netherlands.
• In 1678 the Treaty of Nijmegen:
• France Annexed French-Comte and other Spanish territories
• France obtained the dominance of the continent.